SEC Drops Uniswap Investigation, UNI Token Briefly Spikes

The SEC dropped its investigation into Uniswap Labs, causing the UNI token to jump up in price. This comes as a welcome reprieve after a particularly bearish month when the v4 upgrade landed with a thud.

Uniswap’s CEO Hayden Adams claimed that TradFi regulations are not applicable to the crypto space and that new ones are required. Now that another enforcement case has been dropped, pressure is building to create these friendlier regulations.

SEC Vs Uniswap

When the SEC sent a Wells Notice to Uniswap last year, it kicked off a fierce legal battle. The Commission claimed it an operated unregistered broker, exchange, and clearing agency, and issued an unregistered security. In response, the industry rallied behind it. This case, which was considered integral to the future of DeFi, has now been dropped by the SEC:

“This is a huge win, not just for Uniswap Labs but for DeFi as a whole. I’m grateful that the new SEC leadership is taking a more constructive approach, and I look forward to working with Congress and regulators to help create rules that actually make sense for DeFi. The best days for DeFi are ahead,” claimed Uniswap CEO Hayden Adams.

The quiet end to the Uniswap case is part of a new trend at the SEC. Since President Trump’s term began last month, the Commission has been dropping crypto enforcement suits left and right. It dropped a major suit against Coinbase and ended investigations into Opensea and Robinhood in the last few days.

Now that the SEC has dropped its case, Uniswap’s UNI token can breathe a little easier. Over the past month, its price has suffered after the long-awaited v4 update landed with a flop. The SEC bump hasn’t yet fully erased the unrelated losses from earlier in the day, let alone throughout the last few weeks, but it’s still a significant piece of growth.

Uniswap (UNI) Price Performance. Source: BeInCrypto

A New Future for Crypto Enforcement

In the big picture, it will be interesting to see how the SEC v Uniswap case fits into a broader mosaic of federal crypto policy.

In his statement, Adams claimed that “decentralized technology and self-custody are inherently different” from TradFi and that they should be held to different regulations. This is a common refrain, and the SEC is working to receive constructive industry feedback.

To sum it up, The SEC is dropping a lot of enforcement cases made under Gary Gensler’s interpretation of the law, and Uniswap is part of that trend.

However, as the Commission changes its focus, it also puts pressure on developing this constructive new regulatory environment. Crypto has a real chance to chart its own future, but it must comply with the new rules it helps create.

The post SEC Drops Uniswap Investigation, UNI Token Briefly Spikes appeared first on BeInCrypto.